What it is:
A debit is anrecord that represents either an increase in assets or a decrease in liabilities or . A debit is the opposite of a .
How it works (Example):
Why it Matters:
In terms, "debit" and " " confuse most people, and it is usually clearer (and safer) to indicate which accounts increase or decrease. However, any financial professional should know the terms.
Debits andreflect the double-entry bookkeeping method. This involves making at least two recording entries for every transaction: a debit in one account and a in another account. The method helps prevent errors because the sum of the debits should equal the sum of the .